• The Biden administration has withdrawn two major plans to deliver student loan forgiveness to millions of Americans.
• Here's what borrowers should know.

The Biden administration has withdrawn two major plans to deliver student loan forgiveness.

The proposed regulations would have allowed the secretary of the U.S. Department of Education to cancel student loans for several groups of borrowers, including those who had been in repayment for decades and others experiencing financial hardship.

The combined policies could have reduced or eliminated the education debts of millions of Americans.

The Education Department posted notices in the Federal Register on Friday that it was withdrawing the plans, weeks before President-elect Donald Trump enters the White House.

The department wrote that it was terminating the rulemaking proceeding due to "operational challenges in implementing the proposals." It said it would "commit its limited operational resources" in these final weeks of the administration "to helping at-risk borrowers return to repayment successfully."

The Education Department did not immediately respond to a request for comment.

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"The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration," said higher education expert Mark Kantrowitz.

Trump is a vocal critic of student loan forgiveness, and on the campaign trail he called President Joe Biden's efforts "vile" and "not even legal."

Biden's latest plans became known as a kind of "Plan B" after the Supreme Court in June 2023 struck down his first major effort to clear people's student loans.

Consumer advocates expressed disappointment and concern about the reversal on debt relief.

"President Biden's proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families," Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, said in a statement.

Student loan forgiveness still available

"There are so many borrowers concerned about the impact of the new administration with their student loans," said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.

For now, the Education Department still offers a wide range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness, experts pointed out.

PSLF allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments. Under TLF, those who teach full-time for five consecutive academic years in a low-income school or educational service agency can be eligible for loan forgiveness of up to $17,500.

The Biden administration announced Friday that it would forgive another $4.28 billion in student loan debt for 54,900 borrowers who work in public service through PSLF.

"Many borrowers are particularly concerned about the future of the PSLF program, which is written into law," Rubin said. "Eliminating it would require an act of Congress."

At Studentaid.gov, borrowers can search for more federal relief options that remain available.

Meanwhile, The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.